Put smart grid back on track

Senate to ICC: What part of the law don't you understand?

For the past year, Commonwealth Edison and its state regulator have wrangled over how to implement a new law aimed at upgrading the electric grid and streamlining government oversight of utilities.

The Illinois Commerce Commission opposed the so-called smart-grid bill. So did Gov. Pat Quinn, who appoints the members of the ICC. In the months since the Legislature overrode Quinn's veto of the bill in late 2011, the commission has kept up the fight. It has refused ComEd's request for some revenue increases the utility says are necessary to make the improvements to the grid.

As a result, ComEd has challenged the ICC in court and postponed the full rollout of the smart-grid system until 2015. Consumers will have to wait a few years for the promised benefits of new electricity meters, one of the plan's most important and visible elements.

That's unacceptable. The smart-grid program needs to get on track now.

The ICC has overstepped its authority under the new legislation. Don't take our word for it. Last month, the Illinois Senate took the unusual step of passing a resolution that bluntly stated the ICC actions "fail to reflect the statutory directives and the intent of the Illinois General Assembly." The vote was 47-4.

Senate to ICC: What part of the law don't you understand?

Illinois' aging electricity network is prone to devastating outages. That is an impediment to attracting and retaining businesses. The plan approved by the General Assembly encourages infrastructure investments that will more than pay for themselves in coming years.

When the General Assembly approved the smart-grid law, it recognized the value of a modern electricity grid, and also recognized that long delays in deciding utility rate cases hamper the ability of the companies to respond to changing market conditions. The law tightens the rate review process and sets the parameters for rates, subject to an annual revision.

But the ICC has blocked ComEd on a dozen technical issues that, all told, are worth about $100 million to the utility. ComEd says it can't proceed with the smart grid unless it can reap most of that revenue. The utility is pressing for the ICC to reverse itself at least on two primary issues, which account for about two-thirds of the $100 million being contested. With those concessions, it would proceed with smart grid now and resolve the other issues in court.

The ICC has granted ComEd an average rate increase of $1.48 a month that will hit in January. The utility says that if the ICC grants its request on the two primary issues in dispute, the average monthly bill would be 4 cents lower next year and rise another 40 to 70 cents in 2015.

Granted, the smart grid legislation was controversial. This page supported the final, negotiated language. Quinn did not. It looks now as though his appointees to the ICC are trying, in effect, to uphold his veto.

The ICC has urged ComEd to explain at a hearing in April why it can't move ahead on its smart-grid rollout before 2015. Better that the ICC comply with the state law — with the clear intent of the Legislature — and allow this electricity upgrade to move forward.